TORONTO, July 23, 2020 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (the “PRC”) would like to announce that the Sanya City Development and Reform Commission (“SYDRC”) has finalized the City’s natural gas utility pricing formula adjustment which will be the guideline for the Group to follow on its gas selling prices starting from August 1, 2020 (the “New Gas Selling Price”). SYDRC is the government natural gas price regulating body in Sanya City, and this pricing formula adjustment (the “Pricing Formula”) is part of the pricing control strategy of China’s National Development and Reform Commission (“NDRC”) for the whole of China. The NDRC had announced in 2017 the guiding principle that the difference between the natural gas selling price and the natural gas purchasing price and other qualified indirect costs for distribution should not exceed 5% initially, or 4% after a transition period of three years. The Development and Reform Commissions at the local level have gradually introduced specific regulations in line with such guiding principle. The natural gas market operators in the PRC have adjusted their strategies in the past years in anticipation of the specific pricing changes in their jurisdictions.
CF Energy Updates on the Pricing Formula Adjustment Notification for Gas Distribution Business in Sanya From the Sanya City Development and Reform Commission (SYDRC)
Jul 23, 2020
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